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COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of June 30, 2025 and December 31, 2024:
Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term
 (Years)(3)
June 30, 2025
Loans held-for-investment
Senior secured loans(4)
$924,227,644 $919,672,180 56 100.0 %7.9 %1.5
Allowance for credit lossesN/A(14,252,268)
924,227,644 905,419,912 56 100.0 %7.9 %1.5

Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term
 (Years)(3)
December 31, 2024
Loans held-for-investment
Senior secured loans(4)
$1,065,563,646 $1,060,123,298 65 100.0 %8.1 %2.1
Allowance for credit lossesN/A(11,320,220)
1,065,563,646 1,048,803,078 65 100.0 %8.1 %2.1

(1)    Carrying Value includes $2,284,651 and $3,466,214 in unamortized purchase discounts as of June 30, 2025 and December 31, 2024, respectively.
(2)    Weighted average coupon assumes applicable 30-day term Secured Overnight Financing Rate ("SOFR") of 4.31% and 4.51% as of June 30, 2025 and December 31, 2024, respectively, inclusive of weighted average interest rate floor of 0.97% and 0.63%, respectively. As of June 30, 2025 and December 31, 2024, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day term SOFR.
(3)    Weighted average remaining term assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date.
(4)    As of June 30, 2025, $902,921,404 of the outstanding senior secured loans were held in VIEs and $2,498,492 of the outstanding senior secured loans were held outside of VIEs. As of December 31, 2024, $1,049,886,009 of the outstanding senior secured loans were held in VIEs and $(1,082,931) of the outstanding senior secured loans were held outside of VIEs.

Activity: For the six months ended June 30, 2025, the loan portfolio activity was as follows:
Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2024$1,048,803,078 
Purchases, advances and originations3,605,000 
Principal payments(118,376,467)
Transfer to Real Estate Owned(26,867,505)
Charge-offs2,910,385 
Origination and other loan fees(1,186,611)
Accretion of purchase discount1,181,563 
Accretion of deferred loan fees1,192,902 
Provision for credit losses(5,842,433)
Balance at June 30, 2025
$905,419,912 
Schedule of Loan Risk Ratings The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of June 30, 2025 and December 31, 2024:
June 30, 2025
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20252024202320222021
1— $— $— $— $— $— $— 
26 80,365,000 3,574,551 27,056,641 — 49,470,843 — 
328 495,516,994 — 31,046,957 17,931,720 178,773,996 262,310,309 
414 224,238,863 — — — 159,662,031 59,283,424 
58 124,106,787 — — — 35,730,051 80,579,389 
56 $924,227,644 $3,574,551 $58,103,598 $17,931,720 $423,636,921 $402,173,122 
December 31, 2024
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal2024202320222021
1— $— $— $— $— $— 
23 57,840,000 27,048,495 — 30,416,761 — 
340 616,637,103 31,019,735 17,973,555 266,895,843 294,277,177 
416 292,826,616 — — 140,183,307 147,641,857 
56 98,259,927 — — 74,158,849 19,187,499 
65 $1,065,563,646 $58,068,230 $17,973,555 $511,654,760 $461,106,533 
Schedule of Geographic Concentrations The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of June 30, 2025 and December 31, 2024:
Loans Held-for-Investment
June 30, 2025December 31, 2024
Geography
South36.3 %36.6 %
Southwest32.8 32.9 
Mid-Atlantic18.7 16.1 
Midwest8.7 7.7 
West3.5 6.7 
Total100.0 %100.0 %
June 30, 2025
December 31, 2024
Collateral Property Type
Multifamily90.6 %92.3 %
Seniors Housing and Healthcare8.7 7.1 
Self-Storage0.7 0.6 
Total100.0 %100.0 %
Schedule of Provision for Credit Losses
The following table presents the changes for the three and six months ended June 30, 2025 and June 30, 2024 in the provision for credit losses on loans held-for-investment:

Three months endedSix months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Allowance for credit losses at beginning of period$17,060,194 $7,816,462 $11,320,220 $6,059,006 
Provision for credit losses102,459 1,376,712 5,842,433 3,134,168 
Charge offs(2,910,385)— (2,910,385)— 
Allowance for credit losses at end of period$14,252,268 $9,193,174 $14,252,268 $9,193,174 
The following table presents the changes for the three and six months ended June 30, 2025 and June 30, 2024 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:
Three months endedSix months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Allowance for credit losses at beginning of period$15,241 $63,064 $57,554 $43,647 
(Release of) provision for credit losses(7,691)22,991 (50,004)42,408 
Allowance for credit losses at end of period$7,550 $86,055 $7,550 $86,055 

The following tables present the allowance for credit losses for loans held-for-investment as of June 30, 2025 and December 31, 2024:

June 30, 2025
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$6,607,320 $7,644,948 $14,252,268 
Unfunded loan commitments7,550 — 7,550 
Total allowance for credit losses$6,614,870 $7,644,948 $14,259,818 
Total unpaid principal balance$800,120,857 $124,106,787 $924,227,644 

December 31, 2024
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$7,544,969 $3,775,251 $11,320,220 
Unfunded loan commitments57,554 — 57,554 
Total allowance for credit losses$7,602,523 $3,775,251 $11,377,774 
Total unpaid principal balance$967,303,719 $98,259,927 $1,065,563,646